Bill > LD1682

This bill modifies Maine's income tax structure for tax years beginning in 2025, introducing a more progressive tax system with additional tax brackets and higher marginal tax rates for different filing categories (single individuals, heads of households, and married couples filing jointly). Specifically, the bill adds three new income tax brackets with rates of 8.15%, 9.15%, and 10.15% for higher income levels. For single filers and those married filing separately, the new brackets apply to incomes between $100,000-$200,000 (8.15%), $200,000-$300,000 (9.15%), and over $300,000 (10.15%). Similar progressive structures are established for heads of households and married couples filing jointly, with slightly different income thresholds. The bill also maintains the existing 5.8% base rate for lower-income taxpayers and includes provisions for annual indexing of tax brackets using the Chained Consumer Price Index, which automatically adjusts the brackets for inflation. This change aims to create a more graduated tax system where higher-income earners pay proportionally more in state income taxes, potentially increasing state revenue and addressing income inequality.

Budget and Finance

https://legislature.maine.gov/legis/bills/display_ps.asp?LD=1682&snum=132